Mortgage Glossary - B

BACKUP CONTRACT: It is a contract through which our purchase and sale of a particular property becomes effective when the another contract for the same property fails.

Balloon: The amount of loan balance remaining at the time loan contract calls for full repayment is called balloon.

Balloon Mortgage –It behaves like a fixed-rate mortgage for a set of number of years (generally five or seven) and then must be paid off in full in a single "balloon" payment. Balloon loans are popular with those expecting to sell or refinance their property within a definite period of time.

Balloon Payment—A Balloon Payment is a lump sum payment for the unpaid balance of the loan.
BAIT AND SWITCH: An illegal advertisement of low interest loans by the lenders to lure the customers. After that they reveal that the stock is limited and offer a very substitute loan with higher rate.

Bankruptcy: It is a legal declaration that you are unable to pay all of your bills in which a court will allow you to clear your debts by paying a percentage of each of them.

BINDER: It is a contract between an insurance buyer and his(her) agent to provide temporary insurance coverage to the former until the policy is delivered.

Bill of Sale - A written document that transfers a title to personal property or properties is called bill of sale
Bimonthly mortgage: A mortgage on which the borrower pays half the monthly payment on the first day of the month, and the other half on the 15th is called Bimonthly mortgage.

Biweekly mortgage: In this mortgage requiring payment two times in a month rather than monthly it means each payment is half of what a monthly payment would be.

Blanket Mortgage –A special type mortgage secured by the pledging of more than one properties or collateral is called Blanket Mortgage.

BLENDED PAYMENT: It is a loan payment that includes principal and interest both and the loan payment remains the same with the principal increasing over time and the interest decreasing.

BRIDGE LOAN: This kind of loan that bridges the gap between purchasing a new home and the sale of the borrower's current home which the buyer takes on his current residence to finance his new residence.

Broker - An individual in any business of assisting in arranging funding or negotiating contracts for a client. Mostly brokers charge a fee or receive a commission for their services.

BUDGET MORTGAGE: A special types of mortgage in which the borrower (which take MORTGAGE) as per his/her suitability makes the monthly payments for insurance premiums, property tax besides paying for the principal and interest.

Builder-financed construction: Having the builder finance the construction.

BUY DOWN MORTGAGE: A kind of mortgage in which the interest rate is decrease to an extent so that in the initial period the Borrower(which takes MORTGAGE) has to make less monthly payments.

BUY- TO- LET- MORTGAGE: When Borrower purchase a property which will be rented out to tenants of loan taken by the borrower is called BUY- TO- LET- MORTGAGE.